The New York Times recent discussed the possibility of not following the traditional inheritance path but instead giving children their inheritances now in "Why I Am Giving My Children Their Inheritances Now."
Any money parents have remaining after they pass away, is typically left to their children in their estate plans. That is what is traditionally done with wealth. It is transferred to the next generation.
A man and his wife are not wealthy, but they make enough to be comfortable and have money left over. They do not wish to spend their extra money on vacations or luxuries. Instead, they have decided to give their extra money to their adult children now.
As a result, their children can use their “inheritance” to meet their current needs or to invest it for their retirements, if they prefer to do that.
This is something that many people would not be interested in doing. On the other hand, anyone interested in doing this, should go about it carefully.
There are possible gift tax implications that need to be considered. You may think you are helping, but find out later your gift was too large, or at the wrong time and can turn out causing way more harm than good.
Our attorneys at Heritage Elder Law help educate families each week in our free workshops on when to give, and how much to give to their children while they are still living. Register today to learn how to avoid common giving mistakes. www.HeritageElderLaw.com (724) 841-0004
Reference: New York Times (June 9, 2017) "Why I Am Giving My Children Their Inheritances Now."